In store only - Office Depot's 50% Worklife rewards applies to Passport photos too - did not realize it till $4 showed up in my rewards account. Their regular price of $8 is quite cheap too. FedEx/Kinkos wanted $12-$13
However, they do not seem to do many of these so be prepared for the employees to look quizically at the camera for a while trying to figure it out. They could not find their 2x2" cutter so told me "we don't cut it any more"
not sure if they have to be taken somewhere special now, but i when i needed one, i took one at work and printed it off on photo paper and cut to 2x2, post office accepted it just fine.
That still costs you $8. (EDIT: I now see that they let you download to print yourself for free. Be careful because if you do not leave whitespace then the pics will all have one side shorter than the others. Photo machines print at 105% in order to ensure full bleed)
I used the tutorial linked below to make my own passport photo in Photoshop and then I uploaded it to Riteaid and picked it up in store for $.15
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